Payment to Authors, Permissions Costs and Subsidiary Rights

The Promotion and Sale of Subsidiary Rights Lynette Owen, Copyright Director, Pearson Education Ltd, United Kingdom

Subsidiary rights : what are they? (1) • Could include right to licence in original language to other territories, including lowprice reprints to developing countries • Book club rights • First & second serial rights to newspapers and magazines • Translation rights • Audio rights, including digital downloads

Subsidiary rights : What are they? (2) • Reprographic rights (e.g. photocopying, scanning of extracts) • Stage, TV and film rights • Merchandising rights • Electronic and multimedia rights • Rights for the visually/reading impaired

Subsidiary rights : Who controls them? • Publishers who have copyright in a work through assignment from the author will control all rights, although it is wise to be clear in the contract that this includes electronic exploitation • Publishers who have a restricted publishing licence may not control the full range of subsidiary rights and will need to ensure they license only those rights clearly granted to them for their agreed territory

Why sell rights? • To generate revenue for the author and the publishing house • To reach markets you may not be able to reach with the original edition for reasons of price or language • To boost author reputation and maintain author loyalty • In some cases, to license works for exploitation in other forms/media

Subsidiary rights : How does the author benefit? • Rights should be handled on their behalf by specialists (e.g. publishing staff or literary agent) • Author will receive agreed contractual share of licence revenue (could range from 50% to 90% depending on type of right and status of author) • Work will be accessible to larger audience and author reputation will be enhanced

How are rights sold? (1) • Potential licensees may approach publisher, or publisher may actively promote rights • Need to identify appropriate and reliable partners; sources of information include publishing directories, catalogues, websites, trade press and attendance at international book fairs • Need to promote titles with rights potential to named contacts (editors); mail catalogues, information sheets and use e-mail alerts with link to website

How are rights sold? (2) • Maintain regular contact with potential licensees; publishing editors, book club buyers, newspaper and magazine editors for purchase of serial (extract) rights; scouts for film and TV companies. Face to face meetings at book fairs or on home territory • Use appropriate sales material: sample visual material for illustrated books, sample chapters, proofs, finished copies, electronic files • For book rights, decide whether it is appropriate to offer on exclusive option basis, multiple submission or full-scale auction (a technique best reserved for major titles)

Subsidiary rights: payment models (1) • Same language, book club and translation rights are normally licensed on an advance and royalty basis, unless licensed edition is printed as coedition by original publisher who may then quote royalty inclusive price per copy • Serial rights are usually paid for as lump sum in 2 instalments • Reprographic rights will often be handled by a national licensing agency on basis of agreed rates per page or per user (e.g. CLA in UK, CCC in USA and other IFRRO members)

Subsidiary rights : Payment models (2) • Stage rights are usually paid as percentage of box office receipts • Film & TV rights are usually bought on basis of lump sum with up front option fee; only very prominent authors receive a percentage of box office receipts • Merchandising rights are sold as a percentage of net receipts, but may be bundled in with film & TV rights • Rights for the visually impaired are usually granted free of charge • Permissions (the right to quote FROM the work) are usually charged at a rate per thousand words for prose, per line for poetry and per illustration

Subsidiary rights: Payment models (3) • Electronic rights: payment models are many and varied • For single e-book supply author will usually receive royalty on net receipts to allow for discount to distributors • Arrangements with library aggregators usually on subscription basis for many titles; publisher receives pro-rata share of subscription and pays author a share • Many such arrangements are treated as sales rather than as licences, e.g. viewed as alternative platform for supply to print version

What skills do you need to sell rights? (1) • Detailed knowledge of your list • Ability to identify rights potential (may vary from title to title) • Knowledge of economic and political situation in key markets • Knowledge of customers • Ability to negotiate appropriate deals and tie them up in suitable licence contracts

What skills do you need to sell rights? (2) • Ability to administer deals – follow up for decisions, signed contracts, payment, publication and royalty payments • Stamina and ability to work under pressure, perhaps in difficult physical circumstances • Communication skills • Additional languages may also be an asset